Whenever questions arose, one of my first brokers would always ask "What does the contract say?" It appears your real estate attorney has already reviewed the contract, so I would go with their opinion.

No. The seller's financial short comings aren't an agent's responsibility. 

That seems high but I say too bad as who was their 'contract' with? Listing agent has to be a little out of it not to wonder where the funds are coming from. I won't use these firms because the bank will not pay them & they know it so they try to extort everyone in the deal. Really, trace back the contract & see where they get paid - they might just stop negotiating on the sellers behalf.

NO. Not your circus or monkeys. And you did not know till you were informed. Push back hard on this.

In my view, the only fee an agent should pay is a fine for excessive celebration at the COE!

If the agent knew about it and didn't disclose it, bad agent!  Pay the fee!  If they don't know, they can't disclose, bad whomever for not telling them!

Of course, none of this is legal advice.  I'm not a lawyer, I only play one on TV.  Consult with a real one.

I would seek the advice of your broker if you have not done so already and state Realtor association attorney regarding this in addition to the other lawyer. Have done several defaults where believe it or not the lender/investor owner had absorbed the "negotiation fee" and if it is not paid that duty falls to the buyer and should of been noted as a possibility or matter of fact up front. I know that many agents give up their hard earned money on negotiation fees, I thankfully have not and passed it on to the rightful owner of that debt. In most cases the property would still be a good deal even with the fee for the buyer. When dealing with a default situation this is a possible or real expectation you can work on with a default buyer and figure it in when making the offer or if you're the listing agent, indicate in the private remark section that the buyer is responsible for any negotiating fee (unless listing agent wants to split or pay part...I know this happens, but not on my team).

Important: You're letting the law firm that negotiates with the lender/investor dictate who has the obligation of the bill? Have you signed any agreement with the negotiating law firm?

I am NOT a real estate attorney-Opinion based on past professional real estate experience.

Only parties to the transaction should ever pay any fees.

The power is say NO as in Next Opportunity remains quite important.  

Not that I've ever heard of

that's absurd.... in our area, we have a short sale attorney who gets her fee from the bank holding the mortgage....and she gets us additional commission money.... the buyer pays nothing extra...the seller pays for nothing and the agents are NEVER asked to participate....

If you didn't sign anything agreeing to paying it then you are not the responsible party. 

This is a problem when negotiating short sales. Lenders will not pay 3rd parties in a transaction and sometimes do not pay attorney fees when there are title fees. Lenders cant wrap the concept that attorneys and title companies are normal transaction fees to pay. So it comes down to telling attorney to reduce his/her fees and split this cost between agents otherwise the deal will not close.

Negotiator should have disclosed assistance fee up front. Listing agent, unless in writing in the listing agreement, has no obligation.  Cross that firm off my vendor list

The FIRST MISTAKE is the negotiator is working for the seller so the seller should have signed a contract up front which would have stated what their fees are. If the law firm did not have the seller sign one, shame on them. It is not the agents spot to pay it, BUT the agent should have known enough about short sales to make sure the negotiator for the seller had an upfront contract, that is unless the seller hired them without the listing agent knowing which i have seen happen. 

You need to be aware of any obligations in your listing agreement or sales contract.

No.

What John Novak said

Responsible? No. Can volunteer to pay - yes. Should better negotiate not to do so ~ yes. 

I do not believe the listing agent should be responsible for paying any fees.

Just make sure, as per contract, listing agent gets paid...

The issue of negotiator fees seems rampant in short sales! 

Well, you have to look at the buyer agency contract and the contract for the purchase of the home.  If it says the agent pays, the agent pays.  I've never heard of one that said that, by the way.  But a lawyer can always try.

This is very good question.

Yes if you failed to disclose a known fact, which is not an issue in the case you present. Otherwise no. Of course you need the advice of an attorney and that is his answer so trust it.